Assignment 6 Questions |49 Questions| With Correct Answers.

In property insurance claims, there is sometimes a question of whether coverage exists or not. In these situations the insurer will send a reservation of rights letter. The purpose of this letter is to advise the insured that A. A coverage problem may exist. B. The claim will be handled by an independent adjuster. C. The policy may not be renewed due to loss frequency. D. The claim is in excess of the deductible. {Ans: A. The purpose of this letter is to advise the insured that a coverage problem may exist.}Which one of the following would have an insurable interest in real property? A. Bank that has provided a personal credit card to the owner of the property B. Former owner of the property C. Mortgagee that has provided a mortgage loan on the property D. Someone expressing interest in purchasing the property {Ans: C. A mortgagee such as a bank that has provided a home mortgage loan has an insurable interest in real property to the extent of the outstanding mortgage.}One aspect of good-faith claim handling is the fair evaluation of the claim. A fair approach to evaluating liability claims is for the claim representative to